Analysing Growth Dynamics

With a focus on analysing the growth dynamics of the agricultural machinery sector, AGCUMEN, a Germany based Ecosystem Intelligence brand of SONEAN for the agriculture and technology sector worldwide, have recently completed a comprehensive study that shines a spotlight on sales trends that drive Agricultural Machinery Manufacturer sales between 2021 to 2023.

The agricultural sector has experienced significant growth in year-on-year sales throughout the research period, and the data reveals that mergers & acquisitions, corporate finance activities, a focus on precision technology, and industry alliances are the most important factors to sales growth for this period.  

Corporate Mergers

Of particular significance are Corporate Mergers & Acquisitions (M&A) which displayed a significant correlation with sales growth underlining the strategic role of M&A activity especially in a market environment where there is enhanced consolidation taking place. Similarly, manufacturers who work in the Precision Technology space including advances in machine autonomy, robotics, sensors, and cameras have seen significant increases in sales by volume. Their focus on using technology to reduce inputs, and or increase outputs is in strong demand in an environment where input prices go up, and sustainability plays a crucial role.

Corporate Finance efforts, including minority investments in startups, were the third most significant factor that correlated with sales growth.

Surprisingly, product launches and upgraded products, seems to have the lowest correlation with year-on-year sales growth compared to the other four factors above.

Agricultural machinery manufacturers are bracing for a challenging year ahead, with many anticipating a downturn in sales for 2024. With commodity prices expected to waver, interest rates high, and uncertainties looming within the subsidy ecosystem, these insights are of great value.

”Understanding the factors that have recently correlated with sales growth is imperative for Agricultural Machinery Manufacturers looking to more stagnant years ahead.


Innovation, strategic partnerships, and a focus on technology-driven solutions have shown to be more than just buzzwords in this industry – they seem to be relevant to manufacturers growth. In our next analysis we will specifically focus on the role of sustainability, and particularly alternative energy and alternative engine forms (including electrification, hydrogen, and e.g. hybrid ones) and their role in sales growth.”

Sara-Nel Ünal, Data Analyst at AGCUMEN
and currently studying in Sydney/Australia.

Additional Research Information

The findings based on Corporate Finance related events (we considered 171 of such developments during 2021-2023, n= 171), Corporate M&A related developments (n= 351), Product Launches and Upgrades (n=790), Alliances entered into (n=2076), and Precision Technology related developments from 2021 until 2023 (n=820), in relation to the above mentioned organizations show, that the highest correlations were found in Corporate M&A activities (R2, Rsquared, of 0.812), and Precision Technology (R2 of 0.809) followed by Corporate Finance activities (R2 of 0.713), and alliances (R2 of 0.674). Product Launches & Upgrades (R2 of 0.442) surprisingly correlated the least with sales developments, and as the previous numbers suggest were really effective when linked to Precision Technology. 



An R2 of > 0.7 value is generally considered to show a high level of correlation which three of the above factors surpass. Alliances is very close to that level (R2 of 0.674). The outcome gives us a good understanding about what other factors might have driven sales development in the past 3 years (from 2021 to 2023) and it suggests that Corporate M&A, Precision Technology related activities (including innovations/launches/upgrades in that area), and Corporate Finance related activities (by also investing in minority shares of startups) are among the main factors that correlate most highly with sales development. It is also interesting to note that many of the Corporate M&A and Corporate Finance activities were related to precision technology (e.g. investment in a startup with focus on precision technology), and thus might have been affected by the focus on precision technology too. For those companies, by the way, where the full FY 2023 numbers have not been communicated yet we looked at the developments in Q1-Q3.

Companies looked at

Among major international players, whose sales related developments we included, were e.g. AGCO (with major brands such as Fendt, Massey Ferguson, and e.g. Valtra) CNH (with major brands such as New Holland, Case IH and e.g. Steyr), Claas, Exel Industries (with major brands such as Hardi, Evrard, Berthoud, Agrifac, and e.g. Apache), John Deere, Kubota, Kuhn, Mahindra, Pöttinger, Türk Traktör, and Yanmar.

Future research

The idea is to extend this research in the next step to other more niche players like Amazone, Argo Tractors, Bednar, Deutz-Fahr, Horsch, Krone, Lemken, Väderstad, and many others but also look at more factors which we have monitored since 2015 such as involvement of manufacturers in alternative energy, and alternative engines related advancements, campaigns, innovations as well as sustainability related activities.